Federal Programs
- FHA loans — 3.5% down with a 580+ score, insured by the Federal Housing Administration.
- Conventional 97% LTV loans — 3% down through Fannie Mae/Freddie Mac programs like HomeReady and Home Possible.
- USDA loans — 0% down for eligible rural and suburban properties.
- VA loans — 0% down for eligible veterans and service members, regardless of first-time buyer status.
State and Local Down Payment Assistance
Nearly every state runs a housing finance agency offering some form of down payment or closing cost assistance, often stackable with an FHA or conventional first mortgage. Many are structured as forgivable loans that convert to a grant after a set number of years living in the home.
Who Qualifies as a 'First-Time' Buyer
Most programs define a first-time buyer as someone who hasn't owned a home in the past 3 years — meaning you can actually qualify again even if you owned a home previously, as long as enough time has passed.
How to Find Programs in Your Area
Your state's housing finance agency website is the most reliable starting point, since program names, income limits, and funding availability change frequently and vary significantly by state and even by county.
This page is for educational purposes and isn't personalized financial or tax advice. Figures, rates, and program details change frequently — confirm current terms directly with lenders, tax professionals, or the IRS before acting.